Stopping mortgage payment

BlackEdelweiss

Out of curiosity how long would it take from the day I stopped paying my mortgage until things went so far my house was repossessed or I got a bad credit rating?

chris85

Bad credit rating, 30 days from when payment is due going missed. Repossession is dependant on if you are engaging in the lender to pay. If you are making no attempt to pay or engage with them they will probably start legal action after 90 days in arrears. If you are engaging with them and trying to resolve the matter then you are covered under the mortgage arrears protocol (forget the exact name for it) and repossession would not be sought immediately. At least a 12 month hold on legal action.

Have you considered contacts MABS to help with finances. Free and impartial advice and they are helping a lot of people at moment.

www.mabs.ie

BlackEdelweiss

My situation is that I have been offered a job abroad which would mean a fairly permanent move for me and the family. Both me and my wife are now on the dole and this is our only way out, bills are starting to pile up and we have less means of paying them. We have never missed a mortgage payment mainly thanks to diverting our childrens allowance straight from the PO to the TSB, we never even see the cash.
As with most people we are in negative equity probably to the tune of about €25,000 so there is no point in selling our house. Our mortgage is almost €900 per month thanks in part to the top up mortgage that we took out thanks to some great advice given to us by our friendly TSB mortgage advisor who told us what a great idea it would be. If it were not for that top up we would be fine. Anyway, back to the point, we could not make anywhere near that on rental income and from what I heard things can get complicated if renting while abroad.
I dont want to get a bad credit rating but my new job will hardly even cover living expenses in the new country so I cannot afford to send anything home. I was wondering if I could just lock the door and wait a year and see how the market was and try to sell it then even if it is still well below, my wages should be on the increase by then and I may have a few spare quid to pay it off with.

Gurgle

You could rent it out when you leave, put the rent towards the mortgage.
It may not cover it, but I expect any bank will agree to reduced payments so long as they cover the interest.

It wouldn't be wise to take the strategic default route, especially considering you're only €25k in negative equity. Yours isn't a 'bought at the peak' hard luck story, you remortgaged when you should have had more sense.

the top up mortgage that we took out thanks to some great advice given to us by our friendly TSB mortgage advisor who told us what a great idea it would be.

You'll get no sympathy with that BS either here or in front of a judge.

chris85

Agreed with Gurgle here. Rent the place out. €25k equity aint too bad these days. Some people have negative equity many multiples of that figure.

I am sure they put a gun to your head for the top up. Banks will try upsell products at every chance, especially back in the boom times. Did you ever learn to say no?

BlackEdelweiss

Why am I stupid for getting a top up on our mortgage and somebody who paid a ridiculous price for a house in 2008 is a hard luck story. Were we not all caught up in the hype of the celtic tiger, the banks and the building contractors. Why is my story called BS? Do a look around and see how many people who bought before the massive price increases and who's properties suddenly became loaded with positive equity and were offered this basically free money because the house prices were going to continue to go up and when we sold our house in a few years the profit would more than cover the new loan.
Thousands of families are now in negative equity because of these top up's, we are just as much victims of the whole thing as those who bought at inflated prices or went for multiple properties. I dont see myself as a victim, I see myself as someone who owns a house that is not worth as much as they owe on it, for whatever reason. I am just trying to find a way out of it all like everyone else.
Typical boards bullsh1t attitude, holier than thou. Did I come on here giving out about being sold a top up mortgage, I just mentioned that that is why we are in trouble. Nobody held a gun to my head but I dont think anybody who bought a house in the boom times was forced to either.

chris85

You were given advice on repossesion and so forth. You were the one mentioned if it wasnt for the top up you wouldnt be in this position and blaming someone in the bank for it. It wasnt free money, never was, you got it on the basis of property increasing in value and thus speculated on the market like everyone. It happened but noone forced you to take the top up.

Also its an internet form. You must expect opinions on this topics to come up. Naive to think otherwise.

Gurgle

BlackEdelweiss wrote: »

Were we not all caught up in the hype of the celtic tiger, the banks and the building contractors.

No actually, the majority of people weren't caught up in the hype and didn't get themselves into debt they couldn't pay for.

Regardless whether the value of your house goes up or down, a loan is a loan and is expected to be repaid. The loan was made with your equity as collateral, they didn't 'buy' your equity.

BlackEdelweiss wrote: »

Why is my story called BS? ... were offered this basically free money

A child of 12 understands that there is no free money.

BlackEdelweiss

I had typed a long reply to your stupid points but I really couldent be bothered continuing in an argument with an idiot like you. Moderators, Please lock this thread or delete it, it is going nowhere.

Blanchguy

What happened to the money you borrowed?

westies4ever

BlackEdelweiss wrote: »

I had typed a long reply to your stupid points but I really couldent be bothered continuing in an argument with an idiot like you. Moderators, Please lock this thread or delete it, it is going nowhere.

No need to insult everyone because they didnt tell you what you wanted to hear.

It is an internet forum and you're going to get opinions - and you wont agree with them all.

donalg1

BlackEdelweiss wrote: »

Why am I stupid for getting a top up on our mortgage and somebody who paid a ridiculous price for a house in 2008 is a hard luck story. Were we not all caught up in the hype of the celtic tiger, the banks and the building contractors. Why is my story called BS? Do a look around and see how many people who bought before the massive price increases and who's properties suddenly became loaded with positive equity and were offered this basically free money because the house prices were going to continue to go up and when we sold our house in a few years the profit would more than cover the new loan.
Thousands of families are now in negative equity because of these top up's, we are just as much victims of the whole thing as those who bought at inflated prices or went for multiple properties. I dont see myself as a victim, I see myself as someone who owns a house that is not worth as much as they owe on it, for whatever reason. I am just trying to find a way out of it all like everyone else.
Typical boards bullsh1t attitude, holier than thou. Did I come on here giving out about being sold a top up mortgage, I just mentioned that that is why we are in trouble. Nobody held a gun to my head but I dont think anybody who bought a house in the boom times was forced to either.

No we werent all caught up and saying things like that round here will only get you answers like you have received from people.

And also blaming the banks for you taking out a top up isnt really going to cut it either as far as the bank or a judge is concerned. You cant blame the banks for you taking out the top up it was you that signed the agreement after all. And there is no point arguing with people about it here as it will get you nowhere, people are sick of those that blame everyone but themselves for mistakes they made during the boom when they got greedy and wanted the best of everything despite not being able to afford it. Anyway best to stick to the topic.

The poster that talked about 30 days to a bad credit rating and 90 to repossession was probably spot on. You would need to show the banks you are making an effort to pay the mortgage and keep the house otherwise they will repossess it.

Like others have said your best bet is to talk to the bank explain the situation and see what you get for rent on the house while you are away, then try negotiate with the bank to reduce your mortgage repayments to something close to the rental income you will receive. This will enable you to keep the house and cover the mortgage for a year anyway then you can re-evaluate.

Gurgle

BlackEdelweiss wrote: »

I had typed a long reply to your stupid points but I really couldent be bothered continuing in an argument with an idiot like you.

And there's me giving constructive advice :rolleyes:
Good luck with the new job, hope it works out for you.

BuffyBot

OP - if you've a problem with a post, report it, don't respond on thread.

On the other hand, you can't ask for public opinion and be selective about what you want to hear. You've been around here for long enough to know that.

I'll close this as requested.